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FINC. Inc has just finished a capital budgeting analysis of a new piece of equipment, and it has a very attractive NPV They are now

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FINC. Inc has just finished a capital budgeting analysis of a new piece of equipment, and it has a very attractive NPV They are now considering whether to buy or lease the machine. The equipment costs $1650,000, has a life of three years, and will have no salvage value after that life. If the company purchases the machine, it will be depreciated by the straight-line method over three years. They have contacted a rental agency, and they offer annual lease payments of $625,000 for three years (payable at the end of the year). FINC'S (before tax) cost of borrowing is 5%, and the marginal tax rate is 20% What is the Net Advantage to Leasing (NAL) under these terms? Should the FINC lease the equipment

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